| AFN began service in February 2000. In August 2002, rates were increased
for the first time. A second rate increase was enacted in May 2003. This
third increase would be effective in June 2004. This rate increase was
recommended by Navigant and discussed thoroughly with Staff and the Advisory
Committee and is also included in the latest AFN Pro Forma.
The Following table illustrates the proposed monthly CATV rate increase:
|
OLD RATE |
INCREASE |
NEW RATE |
| Tier 1 |
$ 7.64 |
$ .61 |
$ 8.25 |
| Tier 2 |
$12.41 |
$ .99 |
$13.40 |
| Tier 3 |
$30.60 |
$2.44 |
$33.04 |
| Tier 4 |
$40.77 |
$3.26 |
$44.03 |
These fees are inclusive of the $.75 PEG Fees that go to RVTV.
Premium Packages would be increased by 5%.
For comparison, the latest advertised rate by Charter for service that is
comparable to Tier 3, is their expanded Basic product listed at $32.40 plus
$2.43 in Franchise and PEG fees for a total customer cost of $34.83. This
is $1.79 higher than AFN's new Tier 3 rate of $33.04.
For comparison purposes, Charter equivalent services in other parts of Jackson
County is about $44.95.
Cable Modem fees would increase as illustrated in the following table:
|
OLD RATE |
00 |
NEW RATE |
| Residential (WSP) |
$21.05 |
|
$23.45 |
| Residential (No ISP) |
$25.78 |
|
$28.90 |
| Business (1-IP address) |
$68.41 |
|
$72.81 |
Also, AFN will be adding 2 new Internet products that would only be available
for customers with an ISP. These products will allow residential type service
to also purchase a fixed IP address and/or higher up-load speeds. The new
rates would be as follows:
Service with fixed IP address
Service with 1mb upload speed |
00 |
$48.25
$48.25 |
Adding the services together is the equivalent to current business cable
modem service, which is priced at $72.81 to our retail ISPs. This new service
would only be available to customer who purchases services from retail ISP's.
With a $2.40 residential cable modem wholesale rate increase, staff expects
retail rates to increase by $3-$4 monthly. Ashland ISP's are currently charging
around $30-$35 for retail service, so staff expects retail rates to be in
the $33-$39 range after this increase.
For comparison purposes, Charter currently charges $39.95 for stand-alone
cable modem rates and $29.95 for the service if the customer purchases cable
TV also. So AFN should remain competitive after the proposed increase.
No changes in High Speed Data Rates are proposed. |
